We’ve Completed Banking Sector Clean-Up – BoG

The Bank of Ghana (BoG) has completed the clean-up of the banking sector.

“The Bank of Ghana has with effect from today, completed the clean-up of the banking, specialized deposit-taking (SDI), and non-bank financial institutions (NBFI) sectors which began in August 2017,” the central bank said in a statement on Friday.

23 finance houses and savings and loans companies had their licenses revoked effective today, Friday, August 16, 2019 by the BoG.

On May 31, 2019, BoG revoked the licenses of some 347 microfinance institutions and 39 microcredit institutions operating in the country.

Earlier some banks also had their licenses revoked and others merged to form the Consolidated Bank Ghana limited.

So far, the central bank has revoked the license of 420 financial institutions which it claimed were insolvent.

The BoG reiterated that this exercise will continue to ensure that the remaining banks become resilient to Ghana’s economic growth trajectory.

“The Bank of Ghana is committed to ensuring that the banking, SDI, and NBFI sectors remain resilient, inclusive, and supportive of Ghana’s economic growth trajectory. To ensure that the remaining institutions remain resilient going forward, the Bank of Ghana will remain vigilant, intensify on-site examinations and enforcement actions including the application of sanctions for non-compliance with statutory, prudential and other requirements, and ensure that early warning signs of distress are mitigated by regulated institutions expeditiously.”

Also, the central bank and the Government of Ghana will launch the Ghana Deposit Protection Scheme in September 2019 to further strengthen protection of depositors’ interests.